Oil Prices on Course for Another Weekly Dip as OPEC+ Looks to Boost Production
Crude oil prices are set for another weekly decline following news that OPEC+ was planning to boost production by another 411,000 barrels daily in July. Meanwhile, a court ruling that blocked Trump’s tariffs has been paused after the White House appealed the decision.
At the time of writing, Brent crude was trading at $63.84 per barrel, with West Texas Intermediate at $60.67 per barrel, both slightly down on Thursday but higher than the start of the week.
Earlier this week, a trade court ruled that President Trump had exceeded his authority in imposing sweeping tariffs on all U.S. trade partners, noting the authority on trade policies lay exclusively with Congress.
The administration, however, appealed immediately, and the appeals court paused the initial ruling while it considered the federal government’s appeal against it. The court will hear the two sides by June 9. Reuters reported that the administration remains determined to implement tariffs, one way or another.
Meanwhile, OPEC+ is meeting on Saturday, and traders and analysts expect another announcement of a 411,000-bpd addition to supply in July. Not all members of the group may be able to boost their production enough, but with Kazakhstan now openly saying it will not limit its production, overall OPEC+ supply is set for a further rise, pressuring prices.
“We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share,” ING commodity analysts wrote in a note on Thursday, suggesting the cartel’s policy will continue weighing on prices in the coming months as well.
Additional bearish news came from Iran, with Reuters reporting this week that Tehran might be inclined to consider a 12-month pause in its uranium enrichment activities if the U.S. releases frozen Iranian funds and recognizes the country’s right to use uranium for nuclear power generation.
By Irina Slav for Oilprice.com
